Asset Class:
1. Fire & Named/ Allied Perils
Fire insurance is an important policy that can protect your company’s
assets against losses as a result of fire or its named perils. It is important to note that businesses that do not own the
premises in which they operate can also cover fire on the contents and renovations etc. done at the premises.
What it offers:
A standard Fire Insurance policy will protect you against loss/damages caused by:
Fire
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Lightning
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Explosion
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Damage caused by water or fire extinguishing agents
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Damage resulting
from attempts to gain access to the fire(e.gFire Dept/ Bomba)
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Smoke damage caused by fire
A fire policy can be expanded in terms of coverage by paying additional premium. An additional premium
buys perils such as, which would otherwise not be covered should the event occur:
a. Aircraft damage
b. Earthquake and volcanic eruptions
c. Storm tempest
d. Flood
e. Explosion
f. Impact damage
g. Bursting or overflowing water tanks/pipes
h. Electrical installation
i. Bush & lalang fire
j. Subsidence or landslip
k.Spontaneous combustion
l. Riot, strike and malicious damage
m.Damage by falling trees or branches
n. Sprinkler leakage
2. Fire Consequential Loss
Fire Consequential Loss or Con Loss for short is as an Business Interruption
insurance which covers and compensates losses suffered as a result of interruption to your business.
What it offers:
Our Fire Consequential Loss Insurance will help defray your expenses and make good on your loss of profit
following a fire or any other perils specified in your Fire Insurance policy.
Therefore, it is important to note that businesses must take up a Fire Consequential
Loss Insurance with a Fire Insurance policy. This policy is also more relevant to manufacturing concerns as opposed to those
in the service industry.
In addition, Con Loss can also indemnify against fees charged by public accountants
who may be engaged to help prepare and certify documentary evidence in the fire damage and loss of profit claims process under
a separate sub section called Accountants & Auditors fees. Another point to note is that Con Loss can also cover Salaries
and Wages of your workforce according to your needs during the shut down of operations after a loss.
3. Burglary
What it offers:
A burglary policy insures your business against losses from burglary or attempted
burglary.
Specifically, with this policy, if either the property insured or your business premises are damaged because of the break-in,
you're covered. However, the insurance is only in effect if damaged property is on the business premises specified in the
policy at the time of break-in.
Types of property that can be insured are:
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Stock (Only stock levels above RM500k is eligible for stock declaration)
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Goods that are held in trust or on commission that you're responsible for
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Furniture, office equipment, fixtures and fittings
4. All Risks
An All Risks policy is used to cover assets of the company that are usually
smaller in size and “portable” in nature. Although the policy is named as such, it does not mean that the asset
will be covered under every circumstance, therefore the misnomer. It is however, a policy with the widest scope of cover. Companies usually cover their PABX system, photocopiers, laptops etc. under this policy.
What it offers:
It covers such items of the company against losses such as:
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Fire & lightning
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Theft by forcible & violent entry (e.g. breaking in)
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Accidental damage (e.g. item being dropped, knocked into thereby causing damage)
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Explosion
plus any other peril specified
Standard exclusions such as stamps and coins, antiques, paintings and other
works of art will apply.
5. Machines & Equipment (All Risks Cover for Machineries)
What it offers:
This policy is designed to protect “immobile” pieces of commercial
and industrial machinery such as extrusion, casting, moulding and offset machines. They are normally located on factory/ production
premises and do not move around.
This policy will cover your equipment against:
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Fire & lightning
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Theft by forcible & violent entry (e.g. breaking in)
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Accidental damage (e.g. item being dropped, knocked into thereby causing damage)
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Flood
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Explosion
plus any other peril specified.
6. Equipment All Risks
What it offers:
Unlike the Machine & Equipment Insurance, which covers immobile equipment,
this policy is designed to cover self-propelled mechanical vehicles such as tractors, forklifts, excavators and bulldozers.
Coverage includes the occurance of the following circumstances:
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Accidental collision or
overturning
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Fire, external explosion,
self-ignition and lightning
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Theft
or burglary
7. Marine Cargo
Marine cargo insurance is one of the most widely purchased
insurance for companies that deals with trade, either internationally or domestically. Marine Cargo Insurance doesn't only
cover goods being transported over sea but also over land and also by way of air transportation.
What it offers:
A Marine Cargo Insurance plan covers loss or damage to the goods concerned
as a result of:
plus any other cover afforded by the other clauses available e.g. ROD
Companies that require Marine insurance on a regular basis
usually has their corporate insurance for Marine arranged on an “Open Cover” basis. This is when a master insurance
policy is issued usually for a period of one year and individual certificates are issued on a “as and when needed”
basis. This is to ease administration work and improve on the speed and efficiency of the process of arranging for this type
of insurance.
Declarations are usually made on a monthly basis or quarterly
basis by most clients and the cost for coverage for the month or quarter is billed accordingly.
8. Marine Hull
What it offers:
The Marine Hull policy covers the hull (physical body
of the vessel) inclusive of all machineries onboard the marine vessel against total or partial loss while the vessel is plying
its route, under construction and repair. The loss could be caused by various perils named in the policy.
9. Money
Money insurance provides coverage in respect of loss of money from any cause whilst money is in the personal
custody of the Insured’s authorised employees, during transit or at premises, whilst open for business and/or whilst
kept in a locked safe overnight.
Personal Accident cover may be provided to any unnamed carrier entrusted to carry cash to and from the
Bank.
What it offers:
Insurance is normally arranged to cover payments of salaries, wages or other earnings, collections of cash
deposits/withdrawals to/from the bank and also cash kept in locked safe or drawer.
The are two limits under the policy. One is for the limit of money in premises and the other limits
for money in transit from one location to another.
Money means wages, salaries or collections in the form of cash, bank notes, cheques, currency notes, postal
orders and money order.
Some noteworthy exclusion’s under the policy are:
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Loss arising from fraud or dishonesty of the Insured’s
employee (coverage can be arranged under Fidelity Guarantee)
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Shortage due to error or omission (e.g. negligence during cash count)
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Loss from any unattended vehicle (e.g. leaving payroll money under car seat)
10. Electronic Equipment Insurance (EEI)
The Electronic Equipment Insurance or EEI policy is a special policy tailor-made
to cover companies with specialized computer equipment in a high technology driven industry. Coverage is extended beyond the
“All Risks” scope to include the following:
What it offers:
Covers losses arising from:
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Fire, through all kinds of explosion, implosions, a direct stroke of lightning,
crash of manned/unmanned flying object, as well as through extinguishing, demolishing, clearing or loss caused during these
events
- Theft, Burglary or Robbery
- Water Damage from tap water, tide water, flooding, backwater, ground
water, corrosion, steam, frost, ice drift, water/dampness and other types of liquid
- Human Beings/ other causes
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Negligence, untrained or improper handling, operational errors, intentional damage by third parties, malicious intent
- Technology in the sense of errors in construction, material defects, manufacturing
discrepancies, over-voltage, induction, damage through indirect lightning
- Natural Phenomena/ Acts of God
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Storm, wind, storm, tide, hail, avalanche, rockslide and Acts of God
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Accidental Damage
11. Plate Glass
Plate glass insurance is a policy meant to cover
plate glasses or fixed glass specifically meant for buildings with large areas of glass or for business premises with huge
glass fronts, windows, doors or showcases. Not many people are aware of its existence but it can be very important policy
in an insurance portfolio.
What it offers:
The policy covers breakage of any glass (including
any print or ornamentation thereon if included) to the extent of the market value of the glass
Some noteworthy exclusion’s under this policy
are:
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Breaking arising out of earthquake, volcanic eruption or war risks.
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Breaking arising during removal or alteration to premises.
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Cost of frames or frameworks, cost of removing of any fittings, fixtures or other obstructions.
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Interruption or delay or loss of business or damage of any kind during the time between occurrence of breakage and replacement
of glass.
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Damaged glass prior to inception of coverage.
12. Machinery Breakdown
The Machinery Breakdown or MB policy is an excellent policy to cover damage(s)
to machinery and can also be arranged to even include loss of profits i.e. MBLOP. The sum insured under this policy is usually
determined by the current market replacement value of the damaged machinery (ies), including transportation
costs, assembly and custom duties.
What it offers:
This policy covers all types of machinery and mechanical installations against
sudden & unforeseen causes of breakdown.
Examples of sudden and unforeseen
causes are:
- Faulty material,
design, construction and erection
- Vibration, maladjustment and misalignment
- Loosening of parts and defective lubrication
- Excessive electrical
pressure and insulation failure
- Short circuiting
or arching
- Carelessness, negligence or lack of skill while operating machinery
- Damage from external
impact or collision
Extension of cover can be arranged
by way paying of additional premium to cover:
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Additional costs (overtime, express delivery freight rates and so on) incurred due to the breakdown
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Surrounding property damage from flying debris
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Loss of contents
13. Industrial All Risks
The IAR insurance covers any accidental physical loss destroyed or damage other than
the excluded causes.
Qualifying requirement for an IAR policy:
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The combined sum insured on Material Damage and Business Interruption at one location must exceed RM50 million.
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The risk to be insured must be submitted to Persatuan Insuran Am Malaysia's rating (PIAM) committee for a Special Rating.
